e2bn cash boost for Sweden's PPM
SWEDEN – The premium pension system (PPM) is to get a cash boost of about SEK18bn (e2bn) in April as contributions from 1999 are invested into the scheme.
Investments for the 4.4m pension savers who named their preferred fund last autumn, will be made according to their latest choice while another 200,000 future pensioners will join the system towards the end of April.
The majority of newcomers will be young people who earned their first salary in 1999.
By the end of May, the contributions of those preferring not to choose a fund will end up in the default 7th AP fund.
Until the choices have been made, the assets are at the Riksgäldskontoret, Sweden’s national debt office, earning 3.5% interest.
The amount of money, for both old and new pension savers, in unknown at the moment but is expected to be around SEK18bn.